Finalized on January 7, a new rule from the Consumer Financial Protection Bureau (CFPB) prohibits credit reporting agencies from including medical debt information in the credit reports and scores they provide to lenders. It’s expected to impact nearly 15 million Americans who have previously been haunted by an estimated $49 billion in medical bills on their credit reports.
The new rule will go into effect 60 days after publication in the Federal Register. It typically takes about three business days for a new document to be added into the Federal Register, which effectively serves as official notice of the rule. So, don’t expect your credit score to improve overnight; it will be several weeks before affected consumers will see the changes.
The credit improvement could help many qualify to buy a home. However, two industry groups filed lawsuits seeking to block the rule
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